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Anyone here ever call it and offer to give back 50% of the money to the investors? The one time I've seen it done, it was taken as "heroic" and that exact same
by TheCondor 6y ago
Anyone here ever call it and offer to give back 50% of the money to the investors? The one time I've seen it done, it was taken as "heroic" and that exact same board approved a dramatic pivot which in turn watched that money and 3 more rounds be consumed by. "That CEO is a straight shooter to make a hard call that quickly... give him some more money..."
All things being equal, I wonder what the content is really worth, that stuff typically doesn't age well so not maintaining the ownership may not have been a bad thing and it sounds like they recognized that it wasn't going to catch fire and so shutting it down makes sense. I expect the investment community will look upon it favorably. It's easy to criticize and I don't think I'd have ever paid $10 a month for it, but we also live in a world where there is TV streaming to gas pumps. I wonder what people will do when gas stations stop selling gas but it still takes 20minutes to fully charge your electric car...
- tyre 6y agoI know multiple companies that have "called it" and returned money to shareholders. Sometimes outright, others via acquihires when the company has a fair bit of runway. It's a combination of respect to investors, the drain of working on something that isn't going anywhere, and starting a fresh company (and cap table) if you have something you want to do instead.
- tacon 6y ago>Anyone here ever call it and offer to give back 50% of the money to the investors? Yes, the startup that became Twitter.